AMBA535_0301: Week 3 Textbook Problems
J. Nedick – 3/22/2020
E5-37
a. Operating items on Deere & Co. Income statement are as follows:
Net sales
Cost of sales
Interest expenses
Other operating expenses
Provision for income taxes
Equity income of unconsolidated affiliates
b. Since Deere and Co’s principal activity is trading in goods (e.g. lawn and garden, and commercial
tractors), earned finance and interest income is not from the principal activity of the company and
therefore should be classified as finance income.